Using Fund and Grow to help with Turn-key start

[Stace Riley]

Hello BP community!

Need some feedback on our funding plan to get into long-term rental investing. We want to build our portfolio with rental properties, but need to work with turn-key companies out of state as the local area is too hot to make the numbers work. We don't want to go with the lower end properties (40-65k), but would rather try and stick around the 100k range after all rehab is done. We are looking in the Memphis and Birmingham areas now, with Detroit and KC next on the list. 

Our challenge is the down payment needed to go along with the conventional financing we will try to obtain to go along with the long-term holding thinking. We have some available funds in a HELOC and may have the opportunity to take out a small loan against my 401k, but still won't have enough for the couple of properties we want to begin with.

We have started the process with Fund and Grow. The idea is to use that for the balance of the down payments needed and throw as much of the cash flow as we can back at the balances and then use the 2nd and 3rd "rounds" of funding to keep the 0% interest on the funds used.

I that have read the other posts here and here that have some great starts to the story, but not much follow up on subsequent "rounds" of funding. I realize that this is usually used for BRRRR investing - but that is somewhat prohibitive with my full-time job and, again, the local market. So, I wanted to get feedback from the community on using lines of credit to get started - and also see if anyone quick with numbers can show what the max time-frame is before this type of funding doesn't make sense for buy-and-hold. (i.e.-how fast we need an alternative exit strategy).

Thanks for the read!